Clarivate PLC 8-K, filed Apr 10, 2020

About this 8-K

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Clarivate PLC (CLVT)

8-K 2020-04-10 For: 2020-04-10

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Added on April 11, 2026

Clarivate PLC filed this 8-K on April 10, 2020.

Appendix A

Proposed Amended and Restated Memorandum and Articles of Association

Appendix B

Proposed Amended and Restated Memorandum and Articles of Association Marked Against Memorandum and Articles of Association as Currently in Effect

Appendix C

Form of Share Repurchase Agreement Between Clarivate and Private Equity Sponsor

Appendix D

Non-GAAP Financial Metrics

Item 5.02: Director or officer change, or executive pay
Item 7.01: Regulation FD disclosure
Item 9.01: Financial statements and exhibits

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Jersey, Channel Islands			001-38911			N/A
(State or other jurisdiction of incorporation)			(Commission File Number)			(IRS Employer Identification No.)

Title of Each Class			Trading Symbol			Name of Each Exchange on Which Registered
Ordinary shares			CCC			New York Stock Exchange

No.			Description
99.1			Notice of Annual General Meeting of Shareholders and Proxy Statement for Clarivate Analytics Plc 2020 Annual General Meeting
99.2			Form of Proxy for Clarivate Analytics Plc 2020 Annual General Meeting
99.3			Press Release of Clarivate Analytics Plc

Date:	April 10, 2020	CLARIVATE ANALYTICS PLC
		By:	/s/ Richard Hanks
			Richard Hanks
			Chief Financial Officer

			Page
Information Concerning Voting and Proxy Solicitation			1
Proposal 1: Election of Directors			5
Proposal 2: Change of Name			5
Proposal 3: Amendment of Memorandum and Articles of Association			6
Proposal 4: Open-Market Share Repurchases			8
Proposal 5: Share Repurchases from the Private Equity Sponsors			8
Proposal 6: Ratification of Appointment of Independent Registered Public Accountants			10
Corporate Governance and Board of Directors			12
Security Ownership of Certain Beneficial Owners and Management			21
Section 16(a) Beneficial Ownership Reporting Requirements			23
Report of the Audit Committee			23
Report of the Compensation Committee			24
Compensation Discussion and Analysis			25
Executive Compensation Tables			40
Executive Employment Agreements			44
Potential Payments Upon Termination or Change in Control			47
CEO Pay Ratio			48
Certain Relationships and Related Person Transactions			50
Shareholder Proposals for the 2021 Annual General Meeting			53
Other Matters			56

	Important Reminder

	Please promptly vote and submit your proxy by mail or email, or by following the instructions for internet voting provided on the Proxy Card, or if you hold your shares through a bank or broker, as instructed by your bank or broker.

	To appoint a proxy, you may sign, date, and return the enclosed Proxy Card in the postage-paid return envelope, or email it to AGM2020@clarivate.com, or follow the instructions for internet voting provided on the Proxy Card. We must receive your Proxy Card or internet voting instructions by May 5, 2020. If mailing, please mail your Proxy Card no later than April 17, 2020.

	Voting by proxy will not limit your rights to attend or vote at the Annual General Meeting.

Name	Age	Director Since	Position with Company
Sheryl von Blucher	58	2019	Director
Jane Okun Bomba	57	—	—
Balakrishnan S. Iyer	63	2019	Director
Richard W. Roedel	70	—	—

	2019	2018
	(in thousands)
Audit Fees	$4,965	$7,621
Audit-Related Fees	250	325
Tax Fees	895	1,310
All Other Fees	8	8
Total	$6,118	$9,264

Director Compensation			Amount ($)
Annual Retainers:
Board of Directors			75,000
Audit Committee Chair			50,000
Risk Committee Chair			20,000
Audit Committee			15,000
Nominating and Corporate Governance Committee			10,000
Compensation Committee			15,000
Risk Committee			10,000
Individual Meeting Fee			18,750

Non-Employee Director Compensation
Name⁽¹⁾	Fees earned or paid in cash⁽¹⁾ ($)	All other compensation⁽²⁾ ($)	Total compensation ($)
Martin Broughton	112,500	—	112,500
Michael Klein	112,500	—	112,500
Balakrishnan S. Iyer⁽³⁾	138,750	1,630	140,380
Charles E. Moran⁽⁴⁾	176,250	34	176,284
Charles J. Neral⁽⁴⁾	240,000	72	240,072
Sheryl von Blucher	132,346	5,426	137,772
Karen G. Mills⁽³⁾	131,250	1,209	132,459
Vin Caraher⁽⁴⁾⁽⁵⁾	112,500	297	112,797

Name	Age	Position
Jerre Stead	77	Executive Chairman and Chief Executive Officer
Richard Hanks	55	Chief Financial Officer
Mukhtar Ahmed	52	President, Science Group
Jeff Roy	51	President, IP Group
Stephen Hartman	50	General Counsel and Global Head of Corporate Development

	Amount and Nature of Beneficial Ownership
Beneficial Owner	Number	Percent
Five Percent Holders:
Onex⁽¹⁾	92,240,031	30.1%
Baring⁽²⁾	35,871,123	11.7%
T. Rowe Price Associates, Inc.⁽³⁾	37,968,527	12.4%

Directors, Director Nominees and Executive Officers:
Jerre Stead⁽⁴⁾	12,505,963	4.1%
Sheryl von Blucher⁽⁵⁾	3,556,684	1.2%
Jane Okun Bomba	—	—
Martin Broughton⁽⁶⁾	532,279	*
Kosty Gilis⁽⁷⁾	—	—
Balakrishnan S. Iyer⁽⁸⁾	532,279	*
Michael Klein⁽⁹⁾	19,878,342	6.5%
Nicholas Macksey⁽¹⁰⁾	—	—
Karen G. Mills⁽¹¹⁾	532,279	*
Charles E. Moran⁽¹²⁾	—	—
Amir Motamedi⁽¹³⁾	—	—
Anthony Munk⁽¹⁴⁾	—	—
Charles J. Neral	26,427	*
Richard W. Roedel	—	—
Matthew Scattarella⁽¹⁵⁾	—	—
Mukhtar Ahmed⁽¹⁶⁾	132,136	*
Richard Hanks⁽¹⁷⁾	437,108	*
Stephen Hartman⁽¹⁸⁾	404,339	*
Jeff Roy⁽¹⁹⁾	219,344	*
All current directors and executive officers as a group (17 individuals)	38,757,180	12.6%

	2019 Results	2018 Results
Revenue	$974,345	$968,468
Adjusted Revenue	$974,783	$951,170
Adjusted EBITDA	$294,066	$272,861
Standalone Adjusted EBITDA	$336,066	$310,968
Free Cash Flow	$47,744	$(71,510)

WHAT WE DO		WHAT WE DON’T DO
✔	We have an independent compensation consultant	✘	We do not provide our CEO with an employment agreement
✔	We have adopted share ownership guidelines for our executive officers and the Board of Directors	✘	We do not permit our employees to engage in hedging transactions
✔	Beginning in 2020, we will have a Compensation Committee that is fully comprised of independent directors	✘	We do not permit our employees to pledge the Company’s securities to secure margin or other loans
✔	Beginning in 2020, the majority of NEO pay will be at risk and dependent upon performance	✘	We do not reprice underwater stock options
✔	The mix of executive officer equity awards in 2020 will include a performance-based element	✘	We do not provide excise tax gross-up payments
✔	In 2020, we intend to engage with our shareholders to discuss executive compensation and corporate governance matters	✘	We do not have an evergreen provision that automatically adds shares to our equity incentive plan

Clarivate Analytics Peer Group for Compensation
Cloudera, Inc.	FTI Consulting, Inc.	MSCI Inc.
ExIService Holdings, Inc.	Gartner, Inc.	Proofpoint, Inc.
Exponent, Inc.	ICF International, Inc.	PRA Health Sciences, Inc.
FactSet Research Systems Inc.	ICON Public Limited Company	RWS Holdings plc
Fair Isaac Corporation	Informa plc	Teradata Corporation
FireEye, Inc.	Morningstar, Inc.

2019 AIP Calculations
Metric	Weighting	Payment Level		2019 Corporate Goal (in thousands)	2019 Corporate Goal as % of Target	2019 Results (in thousands)	AIP Payout Level Achieved
Adjusted Revenue⁽¹⁾	40%	Threshold	0%	$962,000	97.9%	977,775	35.8%
		Target	100%	$982,600	100.0%
		Maximum	200%	$1,080,000	110.0%
Standalone Adjusted EBITDA⁽¹⁾	40%	Threshold	0%	$325,000	97.9%
Standalone Adjusted EBITDA⁽¹⁾	40%	Target	100%	$332,000	100.0%	338,219	43.4%⁽²⁾
		Maximum	200%	$365,200	110.0%
Adjusted Free Cash Flow⁽¹⁾	20%	Threshold	0%	$42,800	75.0%	57,600	20.8%
		Target	100%	$57,000	100.0%
		Maximum	200%	$71,300	125.0%
Calculated Annual Incentive Payout (as a Percentage of Target)						100%

Individual NEO AIP Calculations—100% Corporate
Name	Eligible Base Pay ($)	Pro-Rata AIP Target (%)	Corporate Goal Achievement (%)	Voluntary Forfeiture ($)	Individual Modifier ($)	Final AIP Payout	Total AIP Payout as Percent of Target
Jerre Stead⁽¹⁾	600,000	100.0%	100.0%	(300,000)	—	300,000	50.0%
Richard Hanks	500,000	68.9%	100.0%	—	5,445	350,000	101.6%
Stephen Hartman	350,576	58.2%	100.0%	—	15,813	220,000	107.7%

Individual NEO AIP Calculations—50% Corporate/50% Product Line
Name	Eligible Base Pay ($)	Pro-Rata AIP Target ($)	Corporate Goal Achievement (%)	Percentage of AIP Payout Weighted to Corporate Goals (%)	Individual Modifier ($)	Final AIP Payout ($)	Total AIP Payout as Percent of Target (%)
Mukhtar Ahmed	477,017	91.0%	100.0%	50.0%	132,896	350,000	80.6%
Jeff Roy	416,527	69.9%	100.0%	50.0%	104,453	250,000	85.9%

Position			Stock Ownership Guidelines
Chief Executive Officer			6 times base salary
Other Executive Officers and Leadership Team			3 times base salary
Non-employee Directors			5 times annual retainer

Name and principal position⁽¹⁾	Year	Salary ($)	Stock awards ($)⁽²⁾	Option awards ($)⁽³⁾	Non-equity incentive plan compensation ($)⁽⁴⁾	All other compensation ($)⁽⁵⁾	Total ($)
Jerre Stead Executive Chairman and Chief Executive Officer	2019	380,769	12,960,000	2,940,000	300,000	8,346	16,589,115
Richard Hanks Chief Financial Officer	2019	500,000	—	—	350,000	8,442	858,442
Mukhtar Ahmed⁽⁶⁾ President, Science Group	2019	476,688	—	—	350,000	62,800	889,488
Jeff Roy President, IP Group	2019	416,527	—	—	250,000	8,442	674,969
Stephen Hartman⁽⁶⁾ General Counsel and Global Head of Corporate Development	2019	350,350	—	—	220,000	46,168	616,518
Jay Nadler Chief Executive Officer (Former)	2019	363,462	—	—	—	1,986,382	2,349,844
Annette Thomas⁽⁶⁾ CEO, Scientific and Academic Research (Former)	2019	547,820	—	5,853,715	—	2,593,711	8,995,246

Description	Jerre Stead	Richard Hanks	Mukhtar Ahmed	Jeff Roy	Stephen Hartman	Jay Nadler	Annette Thomas
Matching Contributions to Retirement Plans ($)^(a)	8,250	8,250	41,866	8,250	38,539	8,250
Pension Allowance ($)							33,055
Life Insurance ($)	96	192	550	192	367	96	432
Car Allowance ($)			20,384		7,262
Benefits Continuation ($)						22,844
Advisor Payments ($)^(b)						1,150,000
Legal Fees ($)^(c)						35,000	12,740
Notice Payment ($)^(d)							254,284
Severance ($)^(e)						750,000	2,293,200
Vacation Payout at Termination						20,192
Totals ($)	8,346	8,442	62,800	8,442	46,168	1,986,382	2,593,711

Name			Estimated future payouts under non-equity incentive plan awards⁽¹⁾			All other stock awards: Number of shares of stock or units (#)	All other option awards: Number of securities underlying options (#)⁽²⁾	Exercise or base price of option awards ($/Sh)	Grant date fair value of stock and option awards ($)
Name	Grant date	Approval date	Threshold ($)	Target ($)	Maximum ($)			Exercise or base price of option awards ($/Sh)	Grant date fair value of stock and option awards ($)
Jerre Stead			—	600,000	1,200,000
	May 20, 2019	May 20, 2019					1,000,000⁽³⁾	13.30	2,940,000
	May 26, 2019	May 26, 2019				1,000,000⁽⁴⁾			12,960,000
Richard Hanks			—	344,555	689,110
Mukhtar Ahmed			—	434,207	868,414
Jeff Roy			—	291,095	582,190
Stephen Hartman			—	204,187	408,374
Jay Nadler			—	—	—
Annette Thomas⁽⁵⁾			—	—	—
	Sept. 18, 2019	Sept. 16, 2019					286,525	6.76	3,061,277
	Sept. 18, 2019	Sept. 16, 2019					204,626	10.39	1,474,084
	Sept. 18, 2019	Sept. 16, 2019					204,626	14.18	805,846
	Sept. 18, 2019	Sept. 19, 2019					122,807	17.96	212,422

	Option awards		Option exercise price ($)	Option expiration date	Stock awards
Name	Number of securities underlying unexercised options (#) exercisable	Number of securities underlying unexercised options (#) unexercisable	Option exercise price ($)	Option expiration date	Number of shares or units of stock that have not vested(#)	Market value of shares or units of stock that have not vested ($)
Jerre Stead	1,000,000⁽¹⁾	—	13.30	May 19, 2029
					1,000,000⁽⁸⁾	16,800,000
Richard Hanks	147,992	221,990⁽²⁾	6.61	Mar. 2, 2027
	105,710	158,563⁽²⁾	10.39	Mar. 2, 2027
	105,710	158,563⁽²⁾	14.18	Mar. 2, 2027
	63,426	95,138⁽²⁾	17.96	Mar. 2, 2027
	14,271	9,513⁽³⁾	6.61	May 22, 2027
Mukhtar Ahmed	46,248	184,991⁽⁴⁾	6.91	Mar. 7, 2028
	33,034	132,136⁽⁴⁾	10.85	Mar. 7, 2028
	33,034	132,136⁽⁴⁾	14.78	Mar. 7, 2028
	19,820	79,282⁽⁴⁾	18.72	Mar. 7, 2028
Jeff Roy	73,996	110,995⁽⁵⁾	6.76	Sept. 4, 2027
	52,854	79,282⁽⁵⁾	10.39	Sept. 4, 2027
	52,854	79,282⁽⁵⁾	14.18	Sept. 4, 2027
	31,712	47,570⁽⁵⁾	17.96	Sept. 4, 2027
	7,928	11,892⁽⁵⁾	6.76	Sept. 4, 2027
Stephen Hartman	50,661	33,774⁽⁶⁾	6.61	Mar. 2, 2027
	36,153	24,101⁽⁶⁾	10.39	Mar. 2, 2027
	36,153	24,101⁽⁶⁾	14.18	Mar. 2, 2027
	21,723	14,482⁽⁶⁾	17.96	Mar. 2, 2027
	79,281	52,855⁽⁶⁾	6.61	May 22, 2027
	16,887	67,548⁽⁷⁾	8.14	Nov. 12, 2028
	12,051	48,203⁽⁷⁾	12.68	Nov. 12, 2028
	12,051	48,203⁽⁷⁾	17.23	Nov. 12, 2028
	7,241	28,964⁽⁷⁾	21.78	Nov. 12, 2028
Jay Nadler	863,098	—	6.61	Mar. 2, 2027
	1,970,422	—	10.39	Mar. 2, 2027
	1,970,422	—	14.18	Mar. 2, 2027
	1,182,226	—	17.96	Mar. 2, 2027
Annette Thomas	477,541	—	6.76	Dec. 31, 2022
	341,044	—	10.39	Dec. 31, 2022
	341,044	—	14.18	Dec. 31, 2022
	204,679	—	17.96	Dec. 31, 2022

Name			Number of Shares Acquired Upon Exercise (#)			Value Realized on Exercise ($)
Jay Nadler			2,357,997⁽¹⁾			24,457,399

		Potential Payments Upon Termination
Name	Salary and AIP⁽¹⁾ ($)	Continued benefits⁽¹⁾ ($)	Equity awards ($)	Consulting services ($)	Legal fees ($)	Notice fees⁽²⁾ ($)	Total ($)
Jerre Stead	—	—	—	—	—	—	—
Richard Hanks	1,387,500	31,309	—	—	—	—	1,418,809
Mukhtar Ahmed	573,300	—	—	—	—	—	573,300
Jeff Roy	832,500	23,329	—	—	—	—	855,829
Stephen Hartman	—	—	—	—	—	—	—
Jay Nadler⁽³⁾	3,000,000	45,690	24,267,554⁽⁴⁾	1,150,000	35,000	—	28,498,244
Annette Thomas⁽³⁾	2,293,200	—	5,009,752⁽⁴⁾	—	12,750	254,283	7,569,985

Potential Payment Upon a Liquidity Event
Name			Value of accelerated stock options⁽¹⁾ ($)
Jerre Stead			—
Richard Hanks			3,790,839
Mukhtar Ahmed			2,882,685
Jeff Roy			1,949,702
Stephen Hartman			1,883,944

CEO Pay Ratio
CEO Annual Total Compensation			16,598,115
Median Employee Annual Total Compensation			51,217
Estimated CEO to Median Employee Pay Ratio			324:1

Alternative CEO Pay Ratio
CEO Annual Total Compensation (excluding Merger Shares and stock options related to the Merger)			698,115
Median Employee Annual Total Compensation			51,217
Estimated CEO to Median Employee Pay Ratio			14:1

Country			Number of employees excluded
Austria			1
Azerbaijan			1
Brazil			16
Canada			20
Chile			2
Colombia			1
Czech Republic			4
Denmark			8
Egypt			1
Finland			1
Hong Kong			2
Ireland			1

Country			Number of employees excluded
Italy			17
Kazakhstan			2
Korea, Republic of			32
Mexico			8
New Zealand			21
Poland			3
Russian Federation			12
Singapore			28
South Africa			4
Taiwan			12
Thailand			1
Turkey			2
Ukraine			1
United Arab Emirates			16

1 Definitions, interpretation and exclusion of Standard Table			A-1
Definitions			A-1
Interpretation			A-3
Exclusion of Standard Table			A-4
2 Shares			A-4
Power to issue Shares and options, with or without special rights			A-4
Power to issue fractions of a Share			A-4
Capital contributions without issue of further Shares			A-4
Limit on the number of Joint Holders			A-4
Treasury Shares			A-5
3 Ordinary Shares			A-5
4 Preferred Shares			A-5
5 Register of Members and share certificates			A-6
Issue of share certificates			A-6
Renewal of lost or damaged share certificates			A-6
Uncertificated shares			A-7
6 Transfer of shares			A-7
Form of transfer			A-7
Power to refuse registration			A-7
Notice of refusal to register			A-7
Fee, if any, payable for registration			A-8
Company may retain instrument of transfer			A-8
Transfer to branch register			A-8
Holding of Shares through Direct Registration System			A-8
7 Redemption, Purchase and Surrender of Shares, Treasury Shares			A-8
Power to pay for redemption or purchase in cash or in specie			A-9
Effect of redemption or purchase of a Share			A-9
8 Variation of Rights Attaching to Shares			A-9
9 Commission on Sale of Shares			A-10
10 Non-Recognition of Trusts			A-10
11 Transmission of Shares			A-10
Persons entitled on death of a Member			A-10
Registration of transfer of a Share following death or bankruptcy			A-10
Indemnity			A-10
Rights of person entitled to a Share following death or bankruptcy			A-10
12 Alteration of capital			A-11
Increasing, consolidating, converting, dividing and cancelling share capital			A-11
Reducing share capital			A-11
Sale of fractions of Shares			A-11
13 Closing Register of Members or Fixing Record Date			A-11
14 General Meetings			A-12
Power to call meetings			A-12
Annual general meetings			A-12
Content of notice			A-12
Period of notice			A-12
Persons entitled to receive notice			A-13
Publication of notice on a website			A-13
Time a website notice is deemed to be given			A-13
Required duration of publication on a website			A-13
Accidental omission to give notice or non-receipt of notice			A-13
Notice of other business			A-14

15 Proceedings at meetings of Members			A-17
Quorum			A-17
Use of technology			A-17
Lack of quorum			A-17
Adjournment			A-17
Chairman			A-18
Right of a Director or auditor’s representative to attend and speak			A-18
Method of voting			A-18
Taking of a poll			A-18
Chairman does not have casting vote			A-18
No written resolutions			A-18
16 Voting rights of Members			A-18
Right to vote			A-18
Rights of Joint Holders			A-19
Member with mental disorder			A-19
Objections to admissibility of votes			A-19
Form of proxy			A-19
How and when proxy is to be delivered			A-20
Voting by proxy			A-20
17 Corporations Acting by Representatives at Meeting			A-20
18 Clearing Houses			A-21
19 Directors			A-21
20 Appointment, disqualification and removal of Directors			A-21
No age limit			A-21
No corporate Directors			A-21
Appointment of Directors			A-21
Removal of Directors			A-22
Filling of vacancies			A-22
Resignation of Directors			A-22
Corporate governance policies			A-22
No shareholding qualification			A-22
21 Directors’ Fees and Expenses			A-22
22 Alternate directors			A-23
23 Powers and duties of Directors			A-24
24 Delegation of powers			A-24
Power to delegate any of the Directors’ powers to a committee			A-24
Power to appoint an agent of the Company			A-24
Power to appoint an attorney or authorised signatory of the Company			A-24
Management			A-25
25 Disqualification of Directors			A-25
26 Meetings of Directors			A-26
Regulation of Directors’ meetings			A-26
Calling meetings			A-26
Use of technology			A-26
Quorum			A-26
Voting			A-26
Validity			A-27
27 Permissible Directors’ interests and disclosure			A-27
28 Minutes			A-27
Written resolutions			A-27
29 Record Dates			A-28
30 Dividends			A-28
Payment of dividends by Directors			A-28

Apportionment of dividends			A-28
Right of set off			A-28
Power to pay other than in cash			A-29
How payments may be made			A-29
Dividends or other monies not to bear interest in absence of special rights			A-29
Unclaimed Dividends			A-29
31 Accounts and audits			A-29
Accounting and other records			A-29
No automatic right of inspection			A-30
Sending of accounts and reports			A-30
Time of receipt if documents are published on a website			A-30
Validity despite accidental error in publication on website			A-30
When accounts are to be audited			A-30
32 Audit			A-31
33 Seal			A-31
Company seal			A-31
Official seal			A-31
When and how seal is to be used			A-31
If no seal is adopted or used			A-31
Power to allow non-manual signatures and facsimile printing of seal			A-31
Validity of execution			A-32
34 Officers			A-32
35 Register of Directors and Officers			A-32
36 Capitalisation of profits			A-32
Capitalisation of profits or of any stated capital account or capital redemption reserve			A-32
37 Notices			A-33
Form of notices			A-33
Signatures			A-33
Evidence of transmission			A-33
Delivery of notices			A-33
Giving notice to a deceased or bankrupt Member			A-33
Saving provisions			A-34
38 Authentication of Electronic Records			A-34
Application of Articles			A-34
Authentication of documents sent by Members by Electronic means			A-34
Authentication of document sent by the Secretary or Officers by Electronic means			A-34
Manner of signing			A-35
Saving provision			A-35
39 Information			A-35
40 Indemnity			A-35
Indemnity			A-35
41 Forum			A-36
42 Financial Year			A-36
43 Winding up			A-36
Distribution of assets in specie			A-36
44 Shareholders Agreement and related matters			A-37
Applicability of Article			A-37
Definitions applicable to this Article ‎44			A-37
Shareholders Agreement and Director Nomination Agreement			A-38
Modifications to certain other Articles during applicability of this Article ‎44			A-38

~~/s/ Joshua Hausman~~			~~/s/ Matthew Ross~~
~~Signature of authorised signatory~~			~~Signature of authorised signatory~~

~~Joshua Hausman~~			~~Matthew Ross~~
~~Print name~~			~~Print name~~